Mr. Dexter Ng of Singaporean company Mining.sg has reported growing demand for his company’s cryptocurrency mining hardware. Mr. Ng told Channel News Asia that “customers come in and order 50 rigs on their own.”
Also Read: Central Bank of Singapore Sees No Reason to Regulate Cryptocurrencies
It Has Been Reported That Singaporean Demand for Mining Hardware Is Increasing
Mr. Ng’s business began when he and his friends started making powerful computers specifically built for cryptocurrency mining. The 29-year old stated they then “posted photos online, on Facebook, and people started asking how much is this and they wanted [to] buy it… So I sold it to people who queried on Facebook, and after a while, we started selling many on Facebook, so we decided to incorporate this company.”
Mr. Ng reports experiencing a recent sudden spike in demand for his company’s cryptocurrency mining rigs. In recent months, the company reports having sold approximately 100 rigs per month – a significant increase from the 15 units that company sold in July of this year. Mr. Ng states that previously “probably one person only buys one or two. Now we get customers who buy 10, 20 or even 50.”
Mr. Ian Chan, a customer of Mining.sg, describes his initial trepidation when deciding to invest in cryptocurrency mining hardware. “Calculating the percentage of return is one thing but what if this machine every day gives me issue, where I need to debug or whatever. Then to me, am I buying something that I need to work on every day? From that angle, if I start with buying 20 units, then my problem multiplied 20 times. So I start with one, try it out and if it is good, then I slowly increase my investment in that.” Mr. Chan currently mines Zcash.
Mining.sg’s Mining Rigs Sell for From S$5000 ($3677 USD) to Over S6500 ($4780 USD)
Mr. Chan’s cryptocurrency mining rig generates an income of approximately S$300 ($220 USD). Without factoring the electricity costs incurred by running the rig, Mr. Chan predicts that he will break even on his investment in approximately two years. Ryu, Mr. Chan’s 13-year-old son, owns a mining rig as well.
Last month, the managing director of the Monetary Authority of Singapore (MAS), Ravi Menon, told media that the MAS does not intend to regulate cryptocurrencies in the near future, stating “as of now I see no basis for wanting to regulate cryptocurrencies.” Mr. Menon stated that the MAS intends to “look at the activities surrounding the cryptocurrency and asking ourselves what kinds of risks they pose, which risks would require a regulatory response, and then proceed from there,” adding that “very few jurisdictions regulate cryptocurrencies per se. Most have taken the approach that the currency itself does not pose the risk that warrants regulation.”
The following day, it was reported that numerous Singaporean financial institutions had closed the accounts of companies providing cryptocurrency payment services. The MAS addressed the account closures, stating that it does not interfere with the commercial decisions of banks, “including those in relation to the establishment and termination of business relationships.”
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